Sri Lanka Customs and the Inland Revenue Department (IRD) today signed a Memorandum of Understanding (MoU) to create a joint mechanism for investigating and preventing revenue losses to the State.

The MoU was signed at the Ministry of Finance on 13th of January in the presence of Treasury Secretary Harshana Suriyapperuma.

Officials noted that an operational committee attached to Sri Lanka Customs has identified widespread under-valuation of imported goods at the point of declaration as a major factor contributing to tax revenue losses.

Investigations have also found that some businesses import goods through third parties on a temporary basis to evade taxes, resulting in non-payment of due taxes to the IRD.

To address these issues and minimise tax evasion, the IRD and Sri Lanka Customs will operate as a coordinated joint mechanism under the newly signed MoU. Officials said the agreement will strengthen information sharing, improve enforcement, and enhance the effectiveness of investigations relating to customs duties and inland revenue taxes.

The initiative is expected to boost revenue collection, curb irregular import practices, and reinforce regulatory oversight under the supervision of the Ministry of Finance.